Vitaly A. Sorokin, operator of the cryptocurrency exchange CoinEX.pw, recently announced that CoinEX's wallet server had been hacked and all funds were stolen (h/t CoinDesk).

The announcement came after blogger Dwayne Charrington noticed that Sorokin seemed to be erasing his online presence, deleting his Twitter and Github accounts.

In a post on Bitcointalk.org, Sorokin wrote, "Before this hack happened, we also had several attacks that lost funds and we silently covered those from our fees. For those who was stalking me at internets: thats true, i was trying to hide/delete my accounts. At the very first moment i saw zero balance at our bitcoin wallet i knew this was coming. And it scared the s**t out of me. Hope you can understand that."


"The only way i can see to restore this is to sell more shares at cryptostocks to cover the losses *and to hire a professional security audit team to prevent this from happening again*," Sorokin added. "Long story short, we're covering this from our own pockets again."

In response, Charrington noted, "[I]t is great they covered those losses, but the fact they haven’t disclosed potentially tens of attacks is alarming and a real insight into how poorly managed (security wise) Coinex really is."

Later, Sorokin posted, "While we're waiting for an answer from a few investors, we came up to another idea which could bring much more trust into the bitcoin community. Long story short: an insurance company for Bitcoin-based services. More will come soon, keep calm & carry on."

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